How to prepare for crypto audits
The world of cryptocurrency is still a novelty for the vast majority of people and, therefore, a mystery. This should not be the case, as commercial operations with this type of currency have become increasingly integrated into daily life. Having clarity on these issues is of utmost importance before making any move to avoid unpleasant surprises and to solve any problems that may arise in time.
What is a crypto audit?
This is a review of an organization's use of cryptocurrencies (e.g. Bitcoin) to ensure that the correct controls are in place. It may sound complex, but in reality, a crypto audit is very similar to a cash or currency audit, albeit with some differences.
Because of the growing importance of the issue, the IRS has been taking significant steps. For example, it has been hiring many more people with expertise in these matters, as cryptocurrency technology is predicted to go even further.
What could trigger one?
- Authorities such as the IRS make calculations
- Banks or new investors looking to do some due diligence
- Internal audits to assess the effectiveness of your own controls
How to prepare
There are a number of steps to contemplate to properly prepare before having a crypto audit:
- Ensure detailed accounting
Keeping your accounting books accurate and up to date is crucial to this process, from daily transactions to other types of movements.
- Periodic reporting
Regularly confirm up-to-date financial records, as well as ongoing tax compliance.
- Maintain data visibility
It is normal for auditors to stress test to ensure compliance, so keeping a clear record is recommended.
In case the subject of audits seems complex, remember that you have your #TeamOfTaxExperts ready to advise you on all the doubts you may have.